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Second Wave Petroleum Provides Update on its Judy Creek Operations

CALGARY, Jan. 12 /CNW/ - Further to its news release of December 13,
2010, Second Wave Petroleum Inc. ("Second Wave" or the "Company")
provides an update on its Judy Creek operations.

The Company has successfully located and purchased a new refrigeration
system to replace the unit that was damaged in the previously announced
fire at its Judy Creek 08-24-063-10W5 gas plant. The new refrigeration
unit was purchased on December 20, 2010, and was delivered to the field
on January 5, 2011, where it is positioned at the plant site. The new
system has a licensed capacity for 10 mmcf/d of natural gas with a
capability to produce stabilized natural gas liquids at a ratio of 30
bbls per mmcf, which is an increase from the damaged system's capacity
of 6 mmcf/d of natural gas with a capability to produce 10 bbls of
natural gas liquids per mmcf. Currently, the system is undergoing well
connections and testing with the expected online date to occur during
the last week of January 2011.

Prior to the outage, Judy Creek production had reached a daily net rate
of approximately 1,300 boe/d with approximately 1,050 boe/d being
produced from the Company's Judy Creek Pekisko oil battery. As solution
gas from the Company's Pekisko oil battery is processed exclusively at
the damaged 08-24-063-10W5 gas plant, production of approximately 1,050
boe/d was shut in on December 10, 2010, as the Company could no longer
meet its hydrocarbon dew point requirements on its sales gas stream.

Since the outage at Judy Creek, the Company has completed the tie-ins of
its 100% working interest 03-14 Gilwood gas well and its 05-14 Pekisko
horizontal oil well. Additionally two Pekisko horizontal oil wells and
one vertical oil well have been drilled and are currently awaiting
completion and tie-in. Currently, the Company has 1,650 boe/d of
production awaiting start-up of the Judy Creek gas plant, with the two
Pekisko horizontal oil wells and one vertical oil well to be brought on
later in the first quarter.

As a result of the shut-in volumes at Judy Creek the Company's current
production, by area, is approximately 400 boe/d at Provost, 250 boe/d
at Battle Creek, 250 boe/d at south Judy Creek and 100 boe/d from other
minor areas for a total of approximately 1,000 boe/d.

The Company looks to provide an additional operational update in
February once the refrigeration plant is started up and all of the
associated shut-in and standing wells are on line and optimized.

READER ADVISORIES

Barrels of Oil Equivalent (BOEs). The term BOE refers to barrel of oil equivalent, with natural gas
converted to crude oil equivalent at a ratio of six thousand cubic feet
to one barrel. BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of six mcf (six thousand cubic feet)
to one bbl (one barrel) is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.

Forward-Looking Statements. This news release contains forward-looking statements as to the
Company's internal projections, expectations and beliefs relating to
future events or circumstances. Forward-looking statements are
typically (but not necessarily) identified by words such as
"anticipate", "believe", "plan", "estimate", "expect", "plan",
"intend", "potential", "may", "will", "should" or similar words
suggesting future outcomes. Although the Company believes that these
forward-looking statements are reasonable, undue reliance should not be
placed on them as they are subject to known and unknown risks and
uncertainties, many of which are beyond the Company's control.
Forward-looking statements are not guarantees of future outcomes. There
can be no assurance that the plans, intentions or expectations
contained in the forward-looking statements or upon which they are
based will in fact occur or be realized, and actual results may differ
from those expressed or implied in the forward-looking statements. The
difference may be material.

Second Wave is subject to the inherent risks associated with the
exploration, development, exploitation and production of oil and gas.
More particularly, material risk factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements contained in this news release include:
adverse changes in commodity prices, interest rates or currency
exchange rates; accessibility of capital when required and on
acceptable terms; lower than expected production of crude oil and
natural gas; production delays; lower than expected reserve volumes on
the Company's properties; increased operating costs; ability to attract
and retain qualified personnel or to secure drilling rigs and other
services on acceptable terms; competition for labour, equipment and
materials necessary to advance the Company's projects; unforeseen
engineering, environmental or geological problems; ability to obtain
all required regulatory approvals on a timely basis and on satisfactory
terms; and changes in laws and governmental regulations (including with
respect to taxes and royalties). This list is not exhaustive. Readers
should also review the risk factors described in other documents filed
by the Company from time to time with securities regulatory authorities
in Canada, including its most recent annual information form, copies of
which are available electronically at www.sedar.com and at www.secondwavepetroleum.com.

Specific forward-looking statements contained in this news release
include statements regarding: the timing for bringing the Judy Creek
gas plant back online; and the completion and tie-in of two Pekisko
horizontal oil wells and one vertical oil well during the first
quarter. In making such forward-looking statements, Second Wave has
made various assumptions regarding, among other things: the accuracy of
geological and geophysical data and interpretations of that data;
future oil and natural gas prices; future capital requirements; future
exchange rates; the accessibility and cost of associated services; the
Company's ability to economically produce oil and gas from its
properties and the timing and cost to do so; and its ability to obtain
qualified staff, equipment and supplies in a timely and cost-efficient
manner.

The forward-looking statements included herein are made as of the date
of this news release and Second Wave undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be
required by securities laws.